High valuations of India's online firms cause concern

Mumbai

AS billions of dollars flow into India's booming online economy, some investors are beginning to fret that soaring valuations could hamper market listings and limit their options when it comes to turning paper profits into cash.

India's rising number of smartphone users, cheaper Internet costs and a vast middle class have turned it into one of the hottest markets for investors such as Singapore's Temasek Holdings and venture capitalists Accel Partners and Japan's SoftBank Corp.